Yiling is 32 years old and has worked for his employer for 8 years. His employer offers

Question:

Yiling is 32 years old and has worked for his employer for 8 years. His employer offers a simplified employee pension (SEP).

a. If Yiling earns a salary of $100,000, what is the maximum contribution that his company can make to his SEP?

b. If Yiling earns a salary of $250,000, what is the maximum contribution that his company can make to his SEP?

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